Mount Olympus: Fact and Fiction

Located on the border between Thessaly and Macedonia, Mount Olympus is the highest mountain in Greece... that’s the physical description at least.

Since the times of Homer, Mount Olympus has existed both as a physical mountain and a metaphorical place. The metaphorical pinnacle is what Mount Olympus is best known for today, signifying the unreachable idyllic heaven located above the peaks themselves. Simultaneously, in Greek lore, Mount Olympus served as the home of the gods that presided over the world.

Olympus DAO and DeFi 2.0

Launched in March 2021, and perhaps the most polarizing project in recent memory, Olympus DAO is an attempt to create a decentralized reserve currency through the management of a treasury of assets. Within seven months since its fair launch, it has accumulated more than $400 million in assets for its treasury, and has rocketed to over $3 billion in market capitalization. It’s presale participants who’ve held on since investing $500 each in March, have been rewarded with a stake now worth over $3 million. Unsurprisingly, with its grand vision, rich mythology, and enormous wealth creation, Olympus DAO has cultivated one of the strongest and liveliest communities in the industry.

However, beyond its incredible run, Olympus DAO has also attracted attention for its controversial tokeneconomics - specifically its bonds and treasury. Simply stated, bonds are a mechanism for Olympus DAO to accumulate assets by selling OHM at a discount. It provides these bonds for a handful of assets including DAI, LUSD, FRAX, ETH, as well as OHM-DAI, OHM-LUSD, and OHM-FRAX Sushi LP shares. The latter three are depicted below and are a way for Olympus DAO to own its own liquidity for OHM. Olympus DAO has used this mechanism to accumulate 99% of its own liquidity on-chain.